ROAD TEST EDITOR JONATHAN WONG: The previous-generation BMW X3 was nothing to write home about. In fact, it was a bit of letdown with a not-up-to-BMW-standards interior and stale exterior looks. It handled fine, as all BMWs do, but it definitely got lost in the small-luxury-SUV crowd when one took everything into account.

Not so for the 2011 BMW X3 xDrive35i, which marked the debut of the new-generation model with a worthy interior, sleeker sheetmetal, upgraded suspension bits and healthy muscle from an available turbocharged inline six-cylinder engine.

Without a doubt, the BMW X3 is the class leader when it comes to handling prowess. The front suspension was upgraded to a double-wishbone setup, replacing the previous MacPherson struts. BMW’s dynamic damping control was also present on this test vehicle, allowing the driver to make the X3’s ride cushy or stiff at the push of the center-console button. When things are dialed into sport-plus, the steering tightens up and offers pleasing feedback and response, and the X3 blazes around turns like no other vehicle in this class can.

The force-fed I6 is a workhorse engine in the BMW lineup, going into everything from the 1-series to the 7-series, and with good reason: It’s one heck of an engine, with 300 hp and 300 lb-ft of torque. Throttle response is lively and power is on tap everywhere along the rev band. It’s also connected to a great eight-speed ZF automatic transmission that performs crisp upshifts and downshifts.

All things considered, the X3 is now a complete player in the small sport-utility segment with a much improved interior, more attractive exterior, a potent available engine and swift handling reflexes. It’s certainly the most entertaining vehicle to fling around in the segment and now delivers on all of the other important fronts, too. BMW did a nice job with this redo.

EXECUTIVE EDITOR ROGER HART: BMW has done a good job of taking the X3 and making it into a much better cute ute than when the vehicle was first launched. The interior has a better, more luxurious feel and the ride is a bit more refined and less harsh. Even little things, like the sound the doors make when pushed shut, have been improved.

This particular vehicle was loaded with just about every possible option, which shows you how high the sticker can climb if you check off all of the boxes. But with a base price of $41,000, this is a solid player in the small-crossover/sport-ute segment.

EXECUTIVE EDITOR BOB GRITZINGER: I could not help but do a mental comparo with the Lexus RX 350 we had in the test fleet at the same time--both luxury crossovers, both priced almost identically (base and as-tested), similar in powertrain (six-cylinder, AWD). But that’s where the similarities end. This 2011 BMW X3 xDrive35i is the diametric opposite of the RX 350 when it comes to driving character. Where the RX is sterile and serene (in a good, Lexus-luxury kind of way), the X3 is edgy and sport-oriented (in a good BMW luxury kind of way).

Punch up sport mode and the chassis and powertrain take on a persona that any Lexus short of an LFA would love to have. But when it’s time to enjoy the ride, normal mode is more than comfortable while still entertaining. The best attribute by far is the wicked-strong turbocharged I6 engine--this thing is plenty capable of powering a vehicle of this weight, whether from launch or at 70 mph.

That the X3 even merits comparison to the RX says a lot about the work BMW has done to improve its baby X5. The interior is vastly upgraded, in materials, workmanship and functionality. The driving position and seat comfort is top-shelf. Aside from some of the usual iDrive frustrations, the interior is quite well done, though if that’s real wood in the center console, well, it sure looks fake with all of that gloss applied to it. Finally, the RX we tested at the same price offered an integrated rear-seat entertainment system, which is lacking in this X3 at the same as-tested price. But then there’s that aforementioned turbo engine, and an eight-speed gearbox (versus a six in the RX).

I’m not so sold on the pudgy exterior lines. I liked the crisper look of the original X5, but since then the styling of both the X5 and the X3 have softened.